Apple Pay is a special digital wallet service and mobile payment system developed by Apple which enables those who use Apple Watch-compatible devices, the iPhone 6 and iPhone 6 Plus, iPad Mini 3 and the iPad Air 2 to make secure payments. The Apple Pay system however, doesn’t demand contactless payment terminals to be Apple as it supports American Express’s ExpressPay, MasterCard’s PayPass and Visa’s PayWave.
Below are the latest Apple Pay fees.
Apple Pay was announced by Apple at the iPhone 6 event back on September 9, 2014, where Apple Chief Executive Tim Cook described the system as the fix for the antiquated magnetic stripe card payment mode. Following the announcement, Apple said that software updates for the service will arrive in October for the iPhone 6 and the Apple Watch, which will be released in 2015.
According to Apple, development of the Apple Pay had been in place a long time ago and was preceded by the acquisition of startups and patents necessary to make the system work. To ensure compatibility, Apple worked closely with Visa, MasterCard and American Express.
Development of Apple Pay began in 2013 although the concept had been around for years. According to Apple, the goal was to create a system that employs a single use digital token and will take the place of systems that require submission of personal information.
An interview with a Visa executive revealed that over 750 people worked on the token, with the goal being to establish a “standard for mobile payments”, as one MasterCard exec put it. Unlike other projects however, Apple’s involvement with the project remained a secret and was known to only a select number of people involved in it.
Apple Pay, according to Apple, was designed to be a complete mobile payment system for Apple devices. With Apple Pay, these devices can make payments in online and retail checkouts easily, as the purpose is to replace and digitize debit and credit magnetic stripe card procedures.
With Apple Pay, there would no longer be any need for credit card terminals as it allows Apple devices to communicate wirelessly with point of sale systems via a near field communication (NFC) antenna. This NFC antenna is responsible for storing payment information called the Secure Element, and it also manages the Apple Passbook and Touch ID.
As noted above, the Apple Pay was developed with full compatibility with the Apple Watch, iPhone 6 and iPhone 6 Plus. Those with the iPhone 5, 5C or 5S can still avail of the service by way of the Apple Watch.
The Apple Watch doesn’t have the Touch ID security that other Apple devices have, but it can determine if the user is the one wearing the watch by detecting the skin of the person donning the device. To ensure privacy and security, the system collects all customer payment details and generates a new security code every transaction.
Finally, Apple says the system will not track the usage of service by the customers as that is between the banks, the vendors and users.